FINANCIAL JOURNAL ENTRIES

Transcription

1 FINANCIAL JOURNAL ENTRIES Add New Journal Entry. 2 Journal Entry Types Adjustment Cash Transfer AC Reduction Warrant or Check Correction Tax Charge or Adjustment Tax Cancellation or Adjustment Computer Arts, Inc. Help Desk Support (208) local (800) caisupport@gocai.com Don t forget to check our website for additional Payroll information. Journal Entries March 16, 2018 Page 1 of 12

2 Journal Entry Type Beginning Balance Adjustment Cash Transfer AC Reduction Warrant or Check Correction Tax Charge or Adjustment Tax Cancellation or Adjustment Description This is reserved for year-end closing; you will not use this type. This type is to be used when you are moving accounts within the same fund. This type is used when you need to move cash from one fund to another fund. (Cash and Revenue) This type should be used to reduce cash on an Auditor Certificate. This should never be used to increase cash. This type should only be used to correct problems with expense accounts. (Expense and 200) This type should be used to make any increase or decrease to a tax charge. This type should only be used to increase or decrease many tax cancellation. Account Type Account Number Debit Credit Cash/Asset 100 Increase Decrease Receivable/Asset 110, 120, 130, 140, 150 Increase Decrease Liability/Payable 200,205 Decrease Increase Fund Balance 250,251 Decrease Increase Revenue 300 s or below 100 Decrease Increase Expense 400 s 800 s Increase Decrease Add New Journal Entry From Financial Main, select the Journal Entries icon to get to the list of JE s. A list of all the JE s entered in the current fiscal year will come up. Journal Entries March 16, 2018 Page 2 of 12

3 To add a new JE, click on the Add button Enter in the Description and the Date (back dating if necessary to keep it within a fiscal year). Select the Type of JE you are using. Journal Entries March 16, 2018 Page 3 of 12

4 Depending on the JE, you may want to reference an AC (ex. reducing an AC amount), another JE (ex. changing a previous JE), or a Warrant/Check (ex. correcting a warrant/check that was issued). Enter in the fund and accounts you will be crediting and/or debiting. You can manually put those numbers in or you can double click on the fields to list the funds and accounts available. Add in the amount to debit or credit in that account then select the Add Detail button. Once the Add Detail is selected it will put the information below and allow you to make the next entry. Journal Entries March 16, 2018 Page 4 of 12

5 Remember that the debits and credits should always equal the same amount or the JE cannot be processed. Once they balance and everything looks correct you can process the JE. Once you close the screen after you process, the JE will automatically print. Journal Entry Types Adjustment JE Adjustment type JE s are used when moving money between accounts within the same fund. These are non-cash JE s. Never increase the 100 account. If money was AC d into the wrong account, but it s within the same fund (on an AC, cash is debited and other accounts are credited. On an Adjustment, debit the revenue account the money needs to be taken from and credit the revenue account the money is going into). This is for the SAME FUND and for Revenue accounts. (Use Warrant Check Correction JE s for expense accounts) Debiting revenue will decrease revenue, and a credit to revenue is an increase. Journal Entries March 16, 2018 Page 5 of 12

6 Cash Transfer JE type Cash Transfer is used when cash needs to move from one fund to another fund. This should hit revenue and cash accounts. Make sure the cash account (100) is balanced. Journal Entries March 16, 2018 Page 6 of 12

7 AC Reduction This type should only be used to reduce cash on an AC, do not use to increase cash unless you are reversing an existing AC reduction JE. If an AC amount is incorrect, open the AC to enter the AC Reduction JE: In this example, an AC was entered with a credit amount more than it should be. $ was entered and the correct amount is In Financial Main, open AC s, click to highlight the AC to reduce and select the AC Reduction icon or right click and choose AC Reduction. The Enter AC Correction panel will popup, select the Adjustment button to open the Enter AC Adjustment panel. At the bottom, enter the amount you wish to reduce the AC and click Enter Adjust, then Process: Journal Entries March 16, 2018 Page 7 of 12

8 After you have printed a copy of the JV you can see that an AC Reduction type JE has been created that credits cash and debits revenue. Note: An AC Reduction JE can be done on the AC in the list of AC s or it can be done by entering a new JE with the type AC Reduction and tying it to the AC from there. Journal Entries March 16, 2018 Page 8 of 12

9 Warrant or Check Correction JE This type should only be used to correct problems with expense accounts. You can reference a warrant but you don t have to. It should hit expense and warrants payable accounts (200). You can also just hit expense lines to transfer expense from one account to another but you cannot move across funds. Journal Entries March 16, 2018 Page 9 of 12

10 MOVE MONEY FROM ONE FUND/EXPENSE ACCOUNT TO A DIFFERENT FUND/EXPENSE ACCT. Two Journal Entries: 1. Warrant Correction JE- move money from original Fund/Expense account to new Fund/Expense acct 2. Cash Transfer JE- move money from original Fund/Cash account to new Fund/Cash account Warrant Correction: Fund-Dept- Expense Account (Fund money was paid out of) Fund-Dept 0 transfer acct.397 (Fund money was paid out of) Fund-Dept 0 - transfer acct.397 (Fund money needs to be paid from) Fund-Dept Expense Account (Fund money needs to be paid from) debit debit credit credit Journal Entries March 16, 2018 Page 10 of 12

11 Cash Transfer: Fund-Dept 0 -Cash Account 100 (Fund money was paid out of) debit Fund-Dept 0 -Transfer Acct. 397 (Fund money was paid out of) Fund-Dept 0 -Transfer Acct. 397 (Fund money needs to be paid from) debit Fund-Dept 0 -Cash Account 100 (Fund money needs to be paid from) credit credit Journal Entries March 16, 2018 Page 11 of 12

12 Tax Charge or Adjustment This type of JE is used to make any increase to a tax charge. This is what you would use to create an adjustment that reflects negative amounts on your Taxes Receivable report. Tax Cancellation/Adjustment This type of JE is used for tax cancellations. For example, you need to reduce the receivable amount on a fund/account that is on the Taxes Receivable report. The JE will credit the receivable account and debit the revenue account. Journal Entries March 16, 2018 Page 12 of 12